Hong Kong’s biggest licensed crypto exchange, HashKey Group, has quietly submitted paperwork for an IPO in the city, sources say.

The company is looking to raise up to $500 million and wants to go public before the year’s out, according to people close to the situation who can’t speak publicly. HashKey declined to comment on any listing plans.

HashKey runs a crypto trading platform along with venture capital and asset management businesses in Hong Kong and Singapore. It got its license under Hong Kong’s virtual asset rules that kicked off last year – part of the city’s push to become a major player in digital assets.

This IPO will be a real test of how much Asian investors actually want to put money into crypto companies. Over in the US, Circle Internet Group (they issue stablecoins) pulled in nearly $1.1 billion when they went public in June. Their stock has shot up 385% since then.

Back in February, HashKey landed a $30 million investment from Gaorong Ventures, valuing the company at over $1 billion. Gaorong has backed big Chinese internet names like Meituan and PDD Holdings before.

Hong Kong launched its crypto regulatory framework in 2023, trying to build itself up as a digital asset hub – even though mainland China banned crypto trading back in 2021. The Hong Kong rules let licensed platforms work with both institutional investors and everyday retail traders.

The valuation and timing could still shift as talks continue. By filing confidentially, HashKey can get all their paperwork ready without having to share the details publicly until they’re closer to actually launching. Besides the exchange where people trade spot and derivatives, HashKey also runs HashKey Capital, their venture arm that puts money into blockchain and digital asset companies around Asia.

If this goes through, HashKey would be one of the first major crypto exchanges to list in Asia. It’s all part of Hong Kong’s attempt to position itself as the region’s go-to spot for digital assets, even with mainland China’s restrictions next door.

Hong Kong’s IPO scene has been picking up steam this year, with companies from all kinds of industries looking to list. If HashKey pulls this off successfully, it could open the door for other crypto companies to consider Hong Kong for their own listings.

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